India's government ratifies decision to raise foreign ownership cap on single-brand retailers to 100% from 51%; move potentially paves way for country to loosen foreign ownership restrictions on multi-brand retailers
Andrew Rogers
LOS ANGELES
,
January 10, 2012
(Industry Intelligence)
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On Jan. 10, the Indian government ratified an earlier decision by the Indian cabinet to raise foreign ownership cap on single-brand retailers from 51% to 100%, potentially paving the way for India to loosen foreign ownership restrictions on multi-brand retailers, Bloomberg reported the same day.
Foreign retailers wishing to take advantage of the change in ownership rules for single-brand retail must purchase 30% of their products from small, domestic and cottage industries.
The Indian cabinet’s decision to permit 51% foreign ownership in multi-brand retail remains stalled, and may potentially be addressed after India’s upcoming elections.
The primary source of this article is Bloomberg, New York, New York, on Jan. 10, 2011.
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